Consumer Financing Regulations and Debt Burden Ratio (DBR) Rules in Saudi Arabia
Personal financing and consumer loans in the Kingdom are regulated by the Saudi Central Bank (SAMA) to promote responsible lending, protect consumers from over-indebtedness, and maintain financial stability.
1. The 33.33% Debt Burden Ratio (DBR) Ceiling
SAMA mandates that total monthly debt commitments (including personal loans, auto finance, credit card minimums, and personal credit) cannot exceed 33.33% (one-third) of an active employee's net monthly salary. For retirees, the ceiling is capped at 25% of monthly pension income.
2. Maximum Personal Finance Tenure
Under SAMA consumer finance directives, the maximum repayment tenure for personal consumer loans is 5 Years (60 months).
Frequently Asked Questions
The maximum allowable DBR is 33.33% of net monthly salary for active employees and 25% for retirees.
The maximum tenure is 60 months (5 Years) pursuant to SAMA consumer finance regulations.
Banks calculate 5% of the total approved credit card limit as an active monthly debt obligation when assessing your DBR.